Gannett 3Q TV Revenue Up 38%

Gannett Co. today reported third quarter results that included record revenue and operating results for its broadcasting segment.

Television revenues were up 38.1% to $233 million, compared to $168.8 million in the third quarter a year ago. The revenue growth was driven by $41.7 million in politically related advertising and approximately $37 million in ad spending related to the Summer Olympics. Approximately $4 million of political spending that aired during the Olympics is included in both the political and Olympic categories.

Retransmission revenues were $22.3 million, an increase of 11.5% in the quarter.

Television station digital revenues were 6.4% higher than the third quarter of 2011.

Gannett siad that based on current trends, “the percentage increase in television revenues in the fourth quarter is projected to be in the very high-20s.” However, Gannett said it is difficult to project fourth quarter revenues due to political advertising which will be more than a third of total spot advertising in the quarter.

Broadcasting segment operating expenses were $118.4 million, an 11.9% increase compared to the third quarter last year. Higher sales and marketing costs associated with higher revenues drove the increase.

Operating income was 73.1% higher and totaled

$118.7 million, while operating cash flow was up 65.9% and totaled $125.6 million.

The company said its TV stations “leveraged their strong ratings and footprint to generate substantial ad spending associated with the Summer Olympics on our NBC affiliates and significantly higher political spending.”

Gannett as a whole reportedthat its total operating revenues in the third quarter were 3.4% higher than the prior year and totaled $1.31 billion.

Read the company’s report here.